May 9, 2024
Press Release
Company name: Nittobo (registered as Nitto Boseki Co., Ltd.)
Representative: Hiroyuki Tada, Representative and Chief Executive Officer
(Securities Code: 3110, TSE Prime Market)
Contact: Nobuko Tame, General Manager, Corporate Communication Dept. (Tel: +81-3-4582-5040)
Notice Regarding Nittobo Group's New Medium-Term Management Plan (FY2024-2027)
Nittobo (the "Company") announces that, having commemorated its 100th anniversary in 2023, the Company has formulated its new 4-yearMedium-Term Management Plan (FY2024-2027) in preparation for achieving Big VISION 2030, the Nittobo Group (the "Group")'s long-term vision for 2030, in order to achieve the next 100 years of sustainable growth. An overview is presented below.
1. Review of the Previous Medium-Term Management Plan (FY2021-2023)
During the three years of the previous Medium-Term Management Plan (formerly called Mid-Term Business Plan), we steadily implemented four key initiatives, including strategic investment for future growth, and management foundation reinforcement for the Group as a whole.
* Carbon foot print
After entering the final year of the Medium-Term Management Plan, a sharp recovery in demand for high- value-added glass yarn and cloth made a contribution to results, but earnings fell short of targets. Nevertheless, the financial soundness of the Group was maintained.
FY2020 ACT | FY2023 ACT | FY2023 Target | |||
Net Sales | 78.7 billion yen | 93.3 billion yen | 100.0 billion yen | ||
Operating profit | 6.0 billion yen | 8.4 billion yen | 14.0 billion yen | ||
EBITDA | 12.3 billion yen | 15.6 billion yen | 25.0 billion yen | ||
(EBITDA Margin) | (16%) | (17%) | (25%) | ||
ROE | 8.4% | 6.6% | 10% | ||
Equity ratio | 53.7% | 55.7% | 55% | ||
Capital investment | 56.8 billion yen | 29.5 billion yen | 45.0 billion yen | ||
(based on acceptance) | |||||
4 years cumulative | 3 years cumulative | 3 years cumulative | |||
(including M&A) | |||||
ROIC | 2.9% | 3.8% | 6% | ||
D/E ratio | 0.45× | 0.45× | 0.4× | ||
2.Overview of the New Medium-Term Management Plan (FY2024-2027)
The Group's Corporate Philosophy is to enhance its significance by striving to create healthy and comfortable lifestyles, and thereby continue to contribute to the realization of prosperous communities. In accordance with this basic policy, we have designated Big VISION 2030 as the Group's long-term vision for 2030, and aspire to become a corporate group that continues to create global No.1 niche businesses, and that contributes to "Environment/Energy" "Digital Society," and "Health/Security/ Safety" for realizing a sustainable society.
<Nittobo Group as Global Niche No. 1>
- We extract the full potential of ideas to uncover latent demand, and respond to pinpoint needs.
- We leverage our technological strengths to also take on the challenge of new fields and advance the development of products indispensable to society.
- We establish a unique positions in product development and deepen our relationships with global clients.
Execution over the new Medium-Term Management Plan will pivot on the following two key points.
-
Steadily harvesting the fruits of investment and promoting existing growth strategies to realize Big VISION 2030
We will steadily harvest the fruits of investments made during the previous Medium-Term Management Plan in glass fiber for electronic materials and the medical field, and continue to actively invest for growth to enable us to respond to rapidly expanding new markets. - Building new pillars of revenue for the next 100 years (launch of new structure)
In April 2024, the previous three divisions were reorganized into five business divisions in a transition to a new organizational structure.
In addition to building additional pillars of revenue to follow existing businesses, the launch of this new system will help us unify management of development, manufacturing and sales, and strengthen activities that center the customer perspective.
<Basic Policy of Each Business Division Strategy>
〇Quantitative target (FY2024-2027)
Net sales | FY2027 target | 135.0 billion yen | |
Operating profit | FY2027 target | 20.0 billion yen | |
EBITDA | FY2027 target | 32.0 billion yen | |
ROE | 8% or more* | ||
ROIC | A level exceeding WACC | ||
Capital investment | (4 years cumulative) | Approximately 80.0 billion yen | |
R&D expenses | (4 years cumulative) | Approximately 15.0 billion yen | |
Net D/E ratio | 0.4× or lower | ||
Equity ratio | 55% or more | ||
Our basic policy is to pay a dividend of not | |||
Shareholder Return Policy | less than 55 yen per share, targeting a | ||
dividend payout ratio of 30% of steady | |||
earnings | |||
When operating profit targets are hit on a | |||
Establishing of incentives for employees | single-year basis, a third bonus will be paid | ||
| An additional 0.5 months' worth will be paid | ||
at 12.5 billion yen, increasing by 0.5 months | |||
for every additional 2.5 billion yen thereafter |
- a level consistently exceeding cost of capital
○Environmental targets
Accelerating initiatives to resolve environmental issues to be sure we achieve FY2030 targets. 【FY2030 Targets】
1. Reduce CO2 emissions:30% (compared to FY2013)
2. Reduce glass waste :achieve net-zero waste glass
3. Develop products that contribute to the environment
〇Human resources strategy
Promote initiatives for securing human resources and creating job satisfaction in preparation for sustainable growth.
1.Securing human resources:Aim for 20% increase globally by FY2027
2.Creating job satisfaction :Aim to enhance employee engagement
○Shareholder return policy
The Company's basic policy is to maintain a capital structure that takes into account the balance between financial soundness and shareholder returns, etc., and the dividend policy for shareholders has been designated one of the most important issues facing management. While continuing to secure profits based on the execution of the new Medium-Term Management Plan, the Company is targeting a dividend of not less than 55 yen per share and a dividend payout ratio of 30% of steady earnings.
(Note on the Handling of This Document)
Numerical forecasts contained in this document were created on the basis of information available to the Company as of the date of the announcement. This document is not intended to provide any promise or guarantee on the achievement of future financial results and measures.
Potential risks, uncertainties and other factors that could affect our results of operations include, but are not limited to, economic conditions, demand trends, exchange rate fluctuations and fluctuations in fuel prices.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Nitto Boseki Co. Ltd. published this content on 09 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 May 2024 06:08:08 UTC.